The accumulated loss was acquired from Siam Life Insurance, after Dhipaya Insurance purchased a 20-per-cent stake and renamed Siam Life to Dhipaya Life Assurance in 2011.

Before the takeover, Siam Life had total premiums of Bt80 million to Bt100 million, and Dhipaya Life Assurance set a five-year business plan to accelerate premium growth past the industry standard in order to make profits and clear the accumulated loss quickly.

Last year, Dhipaya Life Assurance reported premium income of Bt4 billion and profit of Bt300 million.

The company projects premium income of Bt5 billion this year, ensuring that it can clear the accumulated loss this year will not need to require stakeholders to inject more capital.

Somporn said this was the last year that shareholders needed to inject money to raise registered capital as Dhipaya Life will raise more capital through an initial public offering next year.

On May 2, shareholders added capital of Bt300 million, bringing the total to Bt1.7 billion. He said the company aimed to have registered capital of Bt3 billion after the IPO and listing on the SET.

After this year, premium growth should be in line with the overall life-insurance market.

The company has promoted short-term life insurance as the key strategy to build premiums before expanding to credit and group life insurance.

"After this year, we will adjust our portfolio by focusing more on ordinary life insurance, which will represent more than 50 per cent of total premiums in the next three to five years," he said.

The company plans to offer life insurance in Laos in the second half of this year as the life-insurance penetration rate there is small at US$2 million to $3 million (Bt65 million to Bt97 million) per annum.

Dhipaya Insurance, an affiliate company, last week said it had begun selling construction all risk (CAR) insurance to Thai companies that have been awarded construction jobs in Laos.